PointSec and privacy

"* Next, the product doesn't start encrypting until recovery information has been backed up on our servers (the files are encrypted by your password, so they are no use to anyone but you - including us)."

Is it mandatory that online backups be made, at installation or any other time?

I can handle my own backups, and I have been using TrueCrypt for several months so the concepts aren't new to me. TrueCrypt is not FIPS 140-2 approved unfortunately so I am required to change to an encryption tool that is.